|Delayed - 08/07 04:10:00 pm|
TEXAS PACIFIC LAND TRUST : Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
|06/15/2020 | 09:02am|
Item 1.01 Entry into a Material Definitive Agreement
As previously disclosed on
"corporate reorganization") into a corporation formed under
"Stockholders' Agreement") with
collectively with their affiliates, "Horizon"),
collectively with their affiliates, "SoftVest," and together with Horizon, the
The Stockholders' Agreement provides that, effective immediately following the
completion of the corporate reorganization, when sub-share certificate holders
receive common stock (the "Common Stock") in the
"Distribution Time"), (a) the Board of Directors of the
"Board") shall be divided into three classes of directors, with directors in
each class serving staggered, three-year terms and (b) (i)
director designated by Mission (the "Mission Designee"), will be appointed to
Class I of the Board (with a term expiring in 2021), (ii)
director designated by SoftVest (the "SoftVest Designee"), will be appointed to
Class II of the Board (with a term expiring in 2022) and (iii)
director designated by Horizon (the "Horizon Designee" and together with the
SoftVest Designee and the Mission Designee, the "Stockholder Designees"), will
be appointed to Class III of the Board (with a term expiring in 2023).
The Stockholders' Agreement also provides, among other things, that during the
term of the Stockholders' Agreement (and for so long thereafter as, for any
Stockholder, the terms of the Stockholders' Agreement may survive and continue
to obligate such Stockholder in accordance with the terms of the Stockholders'
? the Stockholders and Stockholder Designees shall be subject to customary
standstill restrictions relating to, among other things, director nominations,
stockholder proposals, proxy contests, other activist campaigns and
limitations on beneficial ownership of the Common Stock (specifically, a cap
of 23.5% of outstanding Common Stock as to Horizon, a cap of 4% of outstanding
Common Stock as to SoftVest and a cap of 5% of outstanding Common Stock as to
? the Stockholders will vote all of their shares of Common Stock at each annual
or special meeting of stockholders (or in any action by written consent of
stockholders) of the
recommendations, subject to certain exceptions;
? no party will initiate any lawsuit against the other party, subject to certain
? each Stockholder will be permitted to receive confidential information for as
long as its respective Stockholder Designee serves as a director, subject to
certain restrictions and a confidentiality agreement to be entered into by
each Stockholder and its respective Stockholder Designee, as a condition to
each Stockholder Designee's appointment to the Board.
As a condition to the appointment of the Stockholder Designees to the Board, the
Trust, the Trustees and all Investor Parties (as defined below) shall execute by
the Distribution Time a Mutual General Release Agreement substantially in the
form attached as an exhibit to the previously disclosed Settlement Agreement,
pursuant to which each party thereto will release each other party thereto from
all claims and liabilities arising prior to the execution of the Stockholders'
As an additional condition to appointment to the Board, the Horizon Designee
will provide an executed conditional resignation letter, addressed to the Board,
to become effective upon the earliest to occur of (a) Horizon ceasing to
beneficially own 10% of the issued and outstanding shares of the Common Stock
(the "Minimum Ownership Event") and (b) the termination of the Stockholders'
Agreement. The SoftVest Designee, as a condition to appointment to the Board,
will provide to the Board an executed conditional resignation letter to become
effective upon the earliest to occur of (a) the Minimum Ownership Event, (b) the
Horizon Designee ceasing to serve on the Board and (c) the termination of the
If, and for so long as, the Distribution Time has not occurred by
earliest to occur of (a) the date on which the Trustees take steps to abandon
the Trust's planned corporate reorganization, (b) the date on which a
governmental entity has taken any final action permanently prohibiting the
corporate reorganization and (c) the Outside Date. If the Distribution Time has
occurred by the Outside Date, the Stockholders' Agreement will terminate upon
completion of the 2022 annual meeting of stockholders of the
however, the respective obligations of the
Stockholders' Agreement will survive until such time as no Horizon Designee or
SoftVest Designee is serving on the Board, and the obligations of Mission under
the Stockholders' Agreement will survive until the Mission Designee is no longer
serving on the Board.
The foregoing summary of the Stockholders' Agreement does not purport to be
complete and is subject to, and qualified in its entirety by, the full text of
the Stockholders' Agreement, which is attached hereto as Exhibit 10.1 and
incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
initial draft registration statement on Form 10 to the
The press release additionally referenced the Trust's entry into the
Stockholders' Agreement. A copy of the press release is attached as Exhibit 99.1
hereto and is incorporated herein by reference.
The information included in this Item 7.01 of this Current Report on Form 8-K,
including the attached Exhibit 99.1, shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, except as shall be expressly set
forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
10.1 Stockholders' Agreement dated
99.1 Press Release of
104 Cover Page Interactive Data File (embedded within the Incline XBRL document).
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